Plenty of roofing companies start the same way: a good installer gets tired of making money for someone else. The roofing is the part you already know. The license, the insurance, the cash flow and the sales are what decide whether the company is still around in three years. Here is the order that works.
1. Check your state license first
Roofing licensing varies more than almost any other trade. Some states license roofers directly, some fold roofing into a general or residential contractor license, and some leave it to cities and counties. Before you print a business card:
- Look up your state contractor board and find out whether you need a roofing license, a residential contractor license or both
- Check your city and county. Many issue their own contractor registration and require permits for every reroof
- Ask about exams and experience. Some licenses need proof of years in the trade, a business and law exam or a bond
- Register the business with your state. An LLC is common and costs $50 to $500 depending on the state
- Get an EIN from the IRS. It is free and takes ten minutes online
2. Price the insurance before you price a roof
Roofing is one of the most expensive trades to insure because falls are common and serious. Get real quotes before you decide what to charge:
- General liability. For a small roofing company, many owners see premiums in the thousands per year, not hundreds. Homeowners, property managers and suppliers will ask for a certificate
- Workers compensation. Required in most states once you have employees, and roofing rates are among the highest of any trade. This is the line that surprises new owners most
- Commercial auto for the truck and trailer
- A surety bond if your state or city requires one for licensing
If you plan to use subcontracted crews, ask your agent how that affects your policies. Uninsured subs can end up on your workers comp audit.
3. Equipment and crew
You can start without a warehouse, but you need enough to tear off and dry in a roof in a day:
- A truck and a dump trailer, or a dumpster account with a local hauler
- Extension and step ladders, a ladder hoist or a conveyor if you plan to carry shingles up yourself
- Fall protection for everyone on the roof: harnesses, anchors, ropes, and the training to use them
- Coil roofing nailers, a compressor, hoses, tear-off shovels, a magnetic sweeper and tarps
Most owners starting with a truck they already have spend $15,000 to $40,000 on equipment, a trailer and the first year of insurance. The crew is the bigger decision. Running your own employees gives you control of quality; subcontracting crews per square keeps fixed costs low but puts your name on work you do not fully control. Many small companies start with a sub crew and the owner on every roof.
4. Open supplier accounts
Visit the roofing supply houses in your area and open a trade account. Ask about delivery to the roof (rooftop loading saves your crew hours), return policies for unopened bundles and payment terms. Once you have a track record, look into the manufacturer contractor programs; the certifications let you offer longer warranties, which homeowners compare.
5. Set your prices before the first call
Know your cost per square: material, labor, disposal, permit, plus the overhead that keeps the lights on. Most small companies land between $450 and $700 per installed square for architectural shingles, depending on the market. Our guide on how much to charge per square walks through the math. Repairs need a minimum; most roofers will not climb for less than $300 to $400. See roof repair pricing.
6. Land your first roofs without storm chasing
Your first jobs will probably be repairs, small reroofs and referrals:
- Do repairs well and fast. A $640 leak repair done right is the homeowner who calls you for the $13,500 roof in three years
- Ask friends, family and past employers' customers you worked for, if your agreements allow it
- Set up a Google Business Profile with photos of every roof you touch. See Google Business Profile for roofers
- Build a website that shows a ballpark price. Homeowners about to spend five figures look you up first. A roofing company website with your license and a roof calculator gets the inspection instead of the voicemail
- Answer every call. Read missed calls in a roofing company before your first storm season
Read roofing leads without door knocking for the longer playbook.
7. Get the cash flow right
Roofing ties up money. You buy material before the first nail and the balance comes after the job. Take a deposit when the contract is signed (check your state's limit on home improvement deposits) and collect the balance the day the job is done, by card if the customer prefers. Send a deposit invoice and a balance invoice from your phone and you are not waiting three weeks for a check.
How fast it grows
Most small roofing companies grow on reputation in one area, not on storms in other states. Answer fast, show up when you said, clean up every nail and ask every customer for a review. That compounds.
Frequently asked questions
Do I need a license to start a roofing company?
In many states, yes: either a roofing license or a residential contractor license, and many cities add their own registration and permits. Check your state contractor board before you take a job.
How much does it cost to start a roofing company?
Owners who already have a truck often spend $15,000 to $40,000 on equipment, a trailer, licensing and the first year of insurance. Workers compensation is the line that varies most.